Global Industrial Machinery To Reach US$1.6 Trillion

  • Wednesday, 13 September 2017 00:00
Global Industrial Machinery To Reach US$1.6 Trillion Mitcham Machine Tools

The global industrial machinery production market is forecast to reach US$1.6 trillion and is expected to experience growth in the current and short-term period, according to a report by market intelligence company IHS Markit.

Demand for machine tools rose in Europe and the US in the first half of 2017, but a broader market projection indicates that the global demand for this segment still has room for improvement.

The industrial demand for machine tools in North America has improved, after two years of slower demand due to weak energy markets and political uncertainty in the country. The trend of manufacturers leasing machinery is gaining traction in North America, as a strategy to save costs and thus, increasing their revenue.

The machine tool market in China, which is the largest machine tool market, is forecast to be segregated by different end-market needs. Operations that depend on heavy-industrial customers are predicted to fluctuate, while the automotive, electrical, and light industrial sectors are expected to continue its strong growth momentum.

The vehicle manufacturing segment is projected to have an increasing use of advanced machinery to process newer light metals and composite materials used in newer models of vehicles.

The material handling equipment—conveying and lifting systems—segment is expected to see a four percent growth through 2021, but will face competition through the uptake of automated guided vehicles, as well as automated storage and retrieval systems.

It is predicted that short-term machinery production revenues and unit shipments will increase this year, according to the report. The global economy stabilised in the fourth quarter of 2016, and continued to progress on toward February 2017 due to the rise of commodity prices, especially oil and gas, metals and crops.

The report also highlighted that machinery sales are associated to commodity prices. The revenue for global machinery production grew 2.2 percent in the second quarter of 2017 due to wide-ranging improvements undertaken by manufacturers in most industrial sectors worldwide, as well as overall improved performances of the gross domestic product and purchasing managers’ index.

APMEN News, Sep 2017

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